APR to APY Calculator
APR to APY Calculator helps investors compare annual percentage rates (APR) with annual percentage yields (APY) by accounting for compound interest frequency. Convert simple interest rates to effective annual yields to make informed financial decisions.
Calculator
APR (%):Compounding Frequency:
Formula
APY = (1 + APR/n)^n - 1
Where n = compounding periods per year
Conversion Table
| APR | Daily | Monthly | Quarterly |
|---|---|---|---|
| 5% | 5.13% | 5.12% | 5.09% |
| 10% | 10.52% | 10.47% | 10.38% |
| 15% | 16.18% | 16.08% | 15.87% |
FAQs
What's the difference between APR and APY?
APR represents the annual interest rate without compounding, while APY includes compound interest effects. APY shows the actual annual return, especially important for frequent compounding investments.
How does compounding frequency affect APY?
More frequent compounding increases APY. Daily compounding yields slightly higher returns than monthly or quarterly. Our calculator shows how different frequencies impact your actual returns.
Can APY be lower than APR?
No, APY always equals or exceeds APR when interest compounds. If no compounding occurs, APY equals APR. Higher compounding frequency always increases APY relative to APR.
Launch Process
This calculator was developed through market research, financial formula implementation, user interface design, and rigorous testing. We followed web development best practices to ensure accurate calculations and mobile responsiveness before public release.